Money problems are a known initiator of countless divorces in the U.S. However, affluence does not prevent a marriage from breaking down. In a divorce case, the complexity of the divorce proceedings is influenced heavily by the spouses’ financial situation. The higher a couple’s net worth, the greater the financial impact of property division, spousal support, and child support determinations. If you are thinking about divorce and you or your spouse have a high income or own high-value assets, it is important to consider how the wealth may impact the divorce.
The Division of Assets and Debts
Most couples reach an out-of-court property division settlement during their divorce. However, before couples can agree on who gets what, the property must be accurately valued and identified. Complex assets like stocks, stock options, business interests, and other assets with fluctuating or difficult-to-calculate values must be analyzed and valued before they can be properly addressed during property division negotiations.
To divide assets in a divorce, assets must be identified as either marital, meaning they belong to both spouses, or non-marital, meaning they belong to only one spouse. Some assets, like retirement accounts, may be partially marital property and partially non-marital property. Furthermore, there may be important tax consequences to the decisions made during the property division process. A divorce attorney experienced in high net worth divorce cases may work alongside appraisers, accountants, tax professionals, and other financial experts during property division....